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Will leave a like, thanks! You must evaluate the purchase of a proposed spectrometer for the R&D department. The purchase price of the spectrometer including
Will leave a like, thanks!
You must evaluate the purchase of a proposed spectrometer for the R&D department. The purchase price of the spectrometer including modifications is $90,000, and the equipment will be fully depreciated at the time of purchase. The equipment would be sold after 3 years ton $24,000. The equipment would require a $9,000 Increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $65,000 per year in before-tax labor costs. The firm's marginal inderal-plus-state tax rate is 25 What is the initial investment outlay for the spectrometer, that is what is the Year O project cash flow? Enter your answer as a positive value Round your answer to the nearest dollar. 5 b: What are the project's annual cash flows in Years 1, 2, and 3? Do not round intermediate calculations. Round your answers to the nearest dollar Year 15 Year 2:5 Year 3:5 If the WACC is 139, should the spectrometer be purchased? -Select Step by Step Solution
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